Ukrainian steelmakers cut steel production by 5.5% in September

In September 2020, Ukrainian steelmaking companies reduced steel production by 5.5% to 1.6 million tons compared to the same period of the previous year, according to the updated statistics of Ukrmetallurgprom.

In particular, in September Ukrainian companies produced:

• 4 million tons of sinter ore (by 8.2% less than in September 2019);
• 726 thousand tons of coke (-13.8%);
• 6 million tons of pig iron (-7.7%);
• 4 million tons of rolled products (-9.4%);
• 80 thousand tons of pipes (19.4%).

In January–September, steel production fell by 6.5% to 15.3 million tons compared to the same period of the previous year. In the nine months, Ukrainian steelmakers produced:

• 7 million tons of sinter ore (-0.2% against the first 9 months of 2019);
• 2 million tons of coke (-6.8%);
• 2 million tons of pig iron (-2%);
• 7 million tons of rolled products (-2.8%);
• 620 thousand tons of pipes (-23.2%).

Ukrmetallurgprom believes that the main reasons for the decline in steel production are the quarantine restrictions, protectionism policies of the governments of economies that have traditionally been key export markets for Ukrainian steelmakers, a cut in prices and shrinking demand for metal products, and excess steel production capacities around the globe amounting to around 440 million tons annually.

“Ukraine’s mining & metals sector will hardly reach the August level in the next month because of the repair of BOF at Azovstal,” say GMK Center analysts.

It should be noted that Ukraine is coping with the crisis caused by the pandemic better than its foreign competitors. This is a conclusion drawn from the fact that in August, the country managed to keep its 12th position in the world’s largest steelmakers rating.

As of 15 October 2020, the main operating production facilities included 16 out of 21 blast furnaces, 7 out of 8 open-hearth furnaces, 12 out of 16 BOFs, 6 out of 15 electric-arc furnaces and 15 out of 17 continuous casting machines.

As reported earlier, in 2019, companies of Ukraine’s mining & metals sector decreased steel production by 1.2% to 20.85 million tons, pig iron by 2% to 20.6 million tons, and rolled products by 0.9% to 18.2 million tons against 2018.